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USD/CAD in tight range between 20 and 55-day SMAs

© Dukascopy Bank SA
"It is difficult to buy the dollar now as the recent economic figures are not strong enough to justify a rate hike. Players are now paying attention to key indicators to be released later this week, notably US employment figures." 
- Bank of Tokyo-Mitsubishi (based on Business Recorder)

Pair's Outlook 
Disappointing US fundamentals weighed on the Greenback on Friday, pushing the USD/CAD to a fresh one-week low of 1.3055, where the 20-day SMA was located. Although the pair opened just under the monthly PP, a correction is still likely to dominate trade today. The USD has the potential to recover all the way up to the 55-day SMA at 1.3172, but risks of edging lower persist. The bottom target lies at 1.30, namely the weekly S1 and the 100-day SMA, but only if the exchange rate somewhat stabilises below the 20-day one. 

Traders' Sentiment 

After remaining unchanged for a week the share of bulls and bears changed today, taking up 48% and 52% of the market, respectively. Meanwhile, the portion of buy orders slid 16% points to 36%.
© Dukascopy Bank SA

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